Smt. Neelam Singh v. National Insurance Co. Ltd & Anr.

Heard learned counsel for the appellant and Ms. Aruna Singh, Advocate holding brief of Ms. Archana Singh, learned counsel for the respondents.

The present appeal has been filed by the claimant/appellant for enhancement of compensation.

Learned counsel for the claimant/appellant has submitted that the accident had taken place on 10-11/12/2004 and the Tribunal has erred in computing the compensation treating the income of the deceased to be Rs.15,000 per annum. Accordingly, it is submitted that Tribunal should have taken Rs.36,000/- per annum as income of the deceased for computing the compensation in view of the judgment of Apex Court in the case of Laxmi Devi and Others Vs. Mohammad Tabbar and Another, 2008 AICC 915 (SC). It is further submitted that no amount towards future prospect has been awarded by the tribunal whereas, considering the age of the deceased, the claimant/appellant is entitled to 40% towards future prospect in view of the judgement of Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi and Others 2017 (16) SCC 680. It is further submitted that considering the dependents upon the deceased in view of the judgment of the Apex Court in the case of Sarla Verma and others Vs. Delhi Transport Corporation and others 2009 (6) SCC 121, Tribunal should have deducted 1/4th towards personal expenses of the deceased instead of 1/3rd.

Per contra, learned counsel for the respondents has contended that the compensation awarded by the Tribunal is just and proper. It is further submitted that in the facts of the present case, adequate amount has been awarded and appeal deserves to be dismissed.

Having heard learned counsel for the parties and perused the record.

The Apex Court in the case of Laxmi Devi and Others (supra) has held the notional income to be Rs.3000/- per month i.e. Rs.36,000/- per annum and thus, accepting the submission of learned counsel for the claimant/appellant in view of the judgement of Apex Court in the case of Laxmi Devi (supra), it is provided that the income of the deceased should be taken to be Rs.36,000/- per annum for the purpose of computation of compensation.

The submission of learned counsel for the appellant/claimant in respect of future prospect has also got force in view of the judgement of Apex Court in the case of Pranay Sethi (supra) and thus, following the aforesaid judgement of Apex Court, the claimant/appellant is entitled to 40% towards future prospect considering the age of the deceased.

The submission of learned counsel for the claimant/appellant with regard to deduction of 1/4th towards personal expenses of the deceased in view of the judgement of Apex Court in the case of Sarla Verma (supra) has got substance. Thus, this Court holds that 1/4th should be deducted towards personal expenses of the deceased instead of 1/3rd from the income of the deceased for the purpose of computation of compensation.

It is also provided that enhanced amount of compensation shall carry 6% simple interest from the date of institution of claim petition till its payment.